PepsiCo 'negotiating to buy free tortilla chip maker Siete Foods'

PepsiCo is reportedly close to a deal to acquire US tortilla chip maker Siete Foods for more than $1 billion.

A deal for Texas-based Siete Foods could be announced soon unless talks break down, sources said The Wall Street Journal People familiar with the matter were quoted.

The sale process for the company, owned by the Garza family, has drawn takeover interest from private equity firms and other food companies, some sources familiar with the matter told the publication.

Just food has reached out to Doritos maker PepsiCo and Siete Foods for comment.

Siete Foods was founded in Austin, Texas in 2014 by Veronica Garza and her family. The company produces grain- and dairy-free Mexican-American foods. Siete Foods offers products such as tortillas, tortilla chips and seasonings made from alternative ingredients such as almond flour and cassava.

After Veronica Garza was diagnosed with an autoimmune disease, she adopted a grain-free, anti-inflammatory diet to ease and manage her symptoms. She began experimenting with grain-free recipes for her family of seven (siete in Spanish) and developed the almond flour tortilla, Siete's first product. The company is still family-owned and operated by all seven members of the Garza family.

In 2019, the company secured $90 million through a minority stake in the Stripes Group-led company.

Meanwhile, actress Eva Longoria invested an undisclosed amount in Siete Foods earlier this year and now serves as a strategic advisor. The company aims to double revenue from $500 million a year to $1 billion.

Following PepsiCo's second-quarter results, the Lay owner reported that its Frito-Lay division, which covers salty snacks, saw operating profit and volumes decline in the three-month period due to slowing demand.

Ramon Laguarta, CEO of PepsiCo, said: “This need for value or greater awareness of values, I think, affects every household in the United States.” It's different income levels. I think it affects everyone.”

PepsiCo is scheduled to report its third-quarter results on October 8.

“PepsiCo 'negotiating to buy free from tortilla chip maker Siete Foods'” was originally created and published by Just Food, a brand owned by GlobalData.

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